TI billed by SEC for promoting fraudulent cryptocurrency, accepts settlement

0
83


The Securities and Exchange Commission accused TI of promoting fraudulent initial coin offerings (ICOs) in connection with a company called FLiK. The Atlanta rapper and actor has agreed to “pay a civil fine of $ 75,000 and not participate in any offers or sales of digital asset securities for at least five years,” according to a press release from the SEC.The SEC accused TI of offering and selling FLiK “tokens” on its social media accounts and encouraging its followers to invest in the FLiK ICO, while falsely claiming to be a part-owner of the company. The commission also claims that TI recruited “a famous friend” to promote the FLiK ICO on social media, providing a copy of the posts. TI’s social media manager has also been accused of offering and selling FLiK tokens through TI’s social media accounts.

The SEC has filed charges against four other Atlanta residents, including film producer Ryan Felton and three others accused of promoting Felton’s fraudulent ICOs. The two companies involved, FLiK and CoinSpark, have also been charged. All but Felton have agreed to settle.

In February, TI was removed from its role as defendant in a 2018 civil action brought by investors. The trial, which also names Felton and comedian Kevin Hart, is ongoing, currently delayed by the COVID-19 pandemic, court documents show.

Pitchfork has reached out to representatives from TI for their comments and more information.

LEAVE A REPLY

Please enter your comment!
Please enter your name here